Shizuoka Gas Company Ltd.(Shizuoka Gas) and Chubu Gas Company Ltd. (Chubu Gas), came to an agreement to establish a joint venture company and construct natural gas pipeline from Shizuoka City to Hamamatsu City for completion in 2012. Upon completion, natural gas will be supplied to Chubu Gas from Shizuoka Gas through this pipeline.

Aiming to establish stable and economical supply network of natural gas to meet to the natural gas demand which is anticipated to grow substantially in the future in the mid-western part of Shizuoka Prefecture, Shizuoka Gas and Chubu Gas were considering the natural gas pipeline connecting Shizuoka with Hamamatsu and today the two companies have officially concluded agreement.

The part of the whole pipeline, which extends from Suruga-ku, Shizuoka City to Iwata City, about 76 km in length, is named Shizuhama Trunkline, and it will be constructed by Shizuhama Pipeline Company, a joint venture which will be established by equal investment of the two parent companies by the end of May. Extension to the Shizuhama Trunkline from the two companies' pipeline network will be their respective responsibility.

With the completion of this new pipeline, Shizuoka Gas will improve the load factor of its Shimizu LNG Sodeshi terminal and hence the economics. On the other hand, Chubu Gas will have a benefit of an additional source of feedstock from the east end of their existing supply network thus improve the reliability and capacity of their supply.

[Outline of the pipeline between Shizuoka and Hamamatsu]
1. Section: Shimizu LNG Sodeshi Terminal (Shimizu-ku, Shizuoka City)—South supply station of Chubu Gas (Minami-ku, Hamamatsu City)
2. Design: Design pressure about 7MPa, Diameter 400 mm — 500 mm
3. Total Length: Approx. 113 km (Connecting pipeline by Shizuoka Gas — Shizuhama Trunkline — Connecting pipeline by Chubu Gas)
4. Estimate of total investment: Approx. ¥35 billion
5. Scheduled duration of construction:2009-2012
6. Scheduled start-up: 2013